Magnum Hunter High Bidder on 55 Block in Lease Sale 190

Magnum Hunter Resources reports that it was the high bidder on 55 separate lease blocks at the Central Gulf of Mexico Federal Lease Sale #190 held March 17, 2004, in New Orleans, Louisiana. Magnum Hunter will be the operator of over one-half or 31 of the new blocks to be awarded with working interests ranging from 40% to 100%. All of the prospects to be acquired in this lease sale are based upon 3-D seismic interpretation. With this award, the Company will expand its Gulf of Mexico leasehold inventory to 232 separate offshore lease blocks covering approximately 1.1 million gross mineral acres. Magnum Hunter's net financial exposure, assuming all 55 lease blocks are ultimately awarded by the Minerals Management Service, is approximately $9.2 million. Of the 83 companies who bid at the Central Gulf of Mexico Federal Lease Sale, Magnum Hunter was the most active bidder for new lease blocks.

Commenting on the new blocks awarded in the central Gulf of Mexico Lease Sale, Mr. Charles R. (Chuck) Erwin, Senior Vice President of Exploration for Magnum Hunter stated, "Inasmuch as it is becoming increasingly more difficult each year to find new drillable prospects on the shelf, we are very pleased with our high bid blocks from this sale. We also anticipate obtaining the additional economic benefit of royalty relief on certain of these new lease blocks due to their anticipated drill depths which have recently received approval from the Minerals Management Service. Since drilling our Company's first Gulf of Mexico well in May 1999, we have participated in a total of 97 offshore wells resulting in 79 completions, for an overall success rate of 81%. Magnum Hunter currently has net production of approximately 60 million cubic feet equivalents of natural gas per day from properties located in the Gulf of Mexico, or just under 30% of total net daily company-wide production. Magnum Hunter is in the process of adding up to 30 million cubic feet equivalent of new daily production from earlier discoveries in the Gulf of Mexico by mid-year 2004. This new production will come from a combination of successful wells drilled last year and early 2004."